Is Too Much Gold, Apple a Bad Thing?

Gold and Apple dominate many portfolios and that can be a bad thing, Chuck Jaffe explains on MoneyBeat. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... when they are on Mazda's lot Apple to local ... are your mutual funds regular blog geniuses when the cold ... like they are now the make your mutual funds with very cold The de ... Howdy know what the of too much Apple too much gold not enough ... Chuck Jaffe for MarketWatch is here with this one today ... I'd chalk in obviously Apple gold these are two of the biggest momentum plays the a lot of attention we write about a lot on applied ... to the rule is so interested in them ... on white ... boy you really can hold too much of the stuff on on the downside ... well what nobody's gonna complain when it's working in your favor ... I mean when your funds were getting above average returns because they had loaded up on Apple and loaded up on gold are times when the windows were going up ... I was great ... but now if you're looking at your neutral funds for the year at a time when the SNP five hundred has been up about double digits roughly ... you know your due date and you're looking at a mutual fund that he's in that space ... and it's only up four percent for nap percent ... well you can pretty much bet that the problem there is a large cap growth fund that benchmarks to the SNP is Apple ... and it's loaded up on Apple ... again you benefited from the year-ago you're hurting from it now ... that's not a reason to necessarily sell the fun ... the big thing here is very simple you don't want surprises in your fine work full ... so they're concentrating a portfolio to Apple ... you'd like to know what ... I need to have been happening in multiple funds which is really easy to do ... then you've got ... so the issue and it's one thing to look at your fund is that um I got it all if Apple the Holy although not for the stock going down the twenty part of this ... you will find a fund that doesn't have Apple and it doesn't have gold in it I it's not exactly easy is it ... no it isn't what you should know for example there are plenty of ... you know large cap growth funds are large cap value funds that put a five or six or seven percent allocation to gold ... now right now that is hurting them ... a year a half ago that was helping them ... you wanna know all you'd like to know is hey what percentage of my assets is going to go so for example just because you've got to large cap growth funds ... you might say ok I'm diversify but even bulls are putting five percent to gold Betty your portfolio ... he's ... perhaps lagging and the ... euro have five percent of your asset single get five percent this spot and five percent in the spot and maybe you have too much or more than you want to go ... the same goes for Apple where it would be really easy I mean if you own ... the Janis Fund annual Janice wanting ... well ... they both have roughly ten percent will but more than ten percent of their assets in ... Apple ... so you don't have ten percent of one holding Apple get ten percent of two holdings Apple ... the bigger piece of your overall portfolio ... in right now that skill ... eventually you mention the colony outlook fund managers for fully matters like anybody else ... they see something hot it's an easy way to juice their returns ... and even if the fund is in the silly attack find a jump on Apple because well ... it's easy game ... I how do you know what you're at your fund managers proclivities or with such a thing ... what you need to look at the Holdings' value gets a gold holdings but the by the time you get the list you can be outdated depending on how much the fund is trading ... so go to someplace like Morningstar were they routinely ... look at the holdings you can find on Marketwatch's well if you know where to look to go take a look at your mutual fund page and so I wanna look at the holdings ... and if something is not in the top five or ten holdings ... it's not that the amount might be negligible but unless you have the fund that people waiting in basically saying we put five percent in the twenty different stocks ... it's got two percent of one point two percent of another you probably don't have so much overlap which are really killing yourself ... if you have ... one fund it's got a big chunk and anybody who's got more than five percent it's gonna be in their top ten holdings it pretty much have to be ... the way funds are structured ... so look at the top holdings in it that they are then you've got a good idea ... I meant it ... but it comes to gold ... they are they made me just read where it's not quite as easy to say out ... we got five percent because you can do it where were picking up some gold miners in the little that the euro will that there and ... suddenly get up but didn't want to really read the managers letters because if they got gold ... now that I have to explain why are we doing portal ... and if you really don't know anyone figured out ... called off on ... the task to get their service reps on the phone and say I'd like to know Bill Elliott ... write to Kathy Aksland